The standard cost of Product B manufactured by MIT Company includes 2.10 units of direct materials at $6.70per unit. During June, 27,000 units of direct materials are purchased at a cost of $6.50per unit, and 27,000 units of direct materials are used to produce 12,700 units of Product B.(a) Compute the total materials variance and the price and quantity variances. (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.77and the quantity purchased and used is 26,900 units. Zany projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000. What is the sales volume variance for total revenue?a. $100,000 unfavorable b. $100,000 favorable c. $110,000 favorable d. $110,000 unfavorable A suit company has the following standards to make onesuit: Standard Quantity Standard Price Direct materials 4 yards per unit $9.50 per yard Direct Labors 2 hours per unit $12 per hour The company used 13,000 yards of material in order to make 3,000 suits in April. The direct materials quantity variance is: a. $12,000 unfavorable. b. $9,500 unfavorable. c. $9,500 favorable. d. $12,000 favorable.
The standard cost of Product B manufactured by MIT Company includes 2.10 units of direct materials at $6.70per unit. During June, 27,000 units of direct materials are purchased at a cost of $6.50per unit, and 27,000 units of direct materials are used to produce 12,700 units of Product B.(a) Compute the total materials variance and the price and quantity variances. (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.77and the quantity purchased and used is 26,900 units. Zany projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000. What is the sales volume variance for total revenue?a. $100,000 unfavorable b. $100,000 favorable c. $110,000 favorable d. $110,000 unfavorable A suit company has the following standards to make onesuit: Standard Quantity Standard Price Direct materials 4 yards per unit $9.50 per yard Direct Labors 2 hours per unit $12 per hour The company used 13,000 yards of material in order to make 3,000 suits in April. The direct materials quantity variance is: a. $12,000 unfavorable. b. $9,500 unfavorable. c. $9,500 favorable. d. $12,000 favorable.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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Transcribed Image Text:The standard cost of Product B manufactured by MIT Company
includes 2.10 units of direct materials at $6.70per unit. During June,
27,000 units of direct materials are purchased at a cost of $6.50per unit,
and 27,000 units of direct materials are used to produce 12,700 units of
Product B.(a) Compute the total materials variance and the price and
quantity variances. (b) Compute the total materials variance and the
price and quantity variances, assuming the purchase price is $6.77and
the quantity purchased and used is 26,900 units.
Zany projected current year sales of 50,000 units at a unit sale price of
$20.00. Actual current year sales were 55,000 units at $22.00 per unit.
Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per
unit. Budgeted fixed costs totaled $400,000, while actual fixed costs
amounted to $420,000. What is the sales volume variance for total
revenue?a. $100,000 unfavorable b. $100,000 favorable c. $110,000
favorable d. $110,000 unfavorable
A suit company has the following standards to make onesuit:
Standard Quantity
Standard Price
Direct materials
4 yards per unit
$9.50 per yard
Direct Labors
2 hours per unit
$12 per hour
The company used 13,000 yards of material in order to make 3,000
suits in April. The direct materials quantity variance is:
a. $12,000 unfavorable.
b. $9,500 unfavorable.
c. $9,500 favorable.
d. $12,000 favorable.
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